Chapter III CONFERMENT OF OWNERSHIP ON TENANTS.

(1) All lands held by or in the possession of tenants (including tenants against whom a decree or order for eviction or a certificate for resumption is made or issued) immediately prior to the date of commencement of the Amendment Act, other than lands held by them under leases permitted under section 5, shall, with effect on and from the said date, stand transferred to and vest in the State Government. (2) Notwithstanding anything in any decree or order of or certificate issued by any Court or authority directing or specifying the lands which may be resumed or in any contract, grant or other instrument or in any other law for the time being in force, with effect on and from the date of vesting and save as otherwise expressly provided in this Act, the following consequences shall ensue, namely:— (a) all rights, title and interest vesting in the owners of such lands and other persons interested in such lands shall cease and be vested absolutely in the State Government free from all encumbrances; (b) all amounts in respect of such lands which become due on or after the date of vesting shall be payable to the State Government and not to the land-owner, land-lord or any other person and any payment made in contravention of this clause not be valid; (c) all arrears of land revenue, cesses, water rate or other dues remaining lawfully due on the date of vesting in respect of such lands shall after such date continue to be recoverable from the land-owner, landlord or other person by whom they were payable and may, without prejudice to any other mode of recovery, be realised by the deduction of the amount of such arrears from the amount payable to any person under this Chapter; (d) no such lands shall be liable to attachment in execution of any decree or other process of any Court and any attachment existing on the date of vesting and any order for attachment passed before such date in respect of such lands shall cease to be in force; (e) the State Government may, after removing any obstruction which may be offered, forthwith take possession of such lands: Provided that the State Government shall not dispossess any person of any land in respect of which it considers, after such enquiry as may be prescribed, that he is prima face entitled to be registered as an occupant under this Chapter; (f) the land-owners, landlord and every person interested in the land whose rights have vested in the State Government under clause (a), shall be entitled only to receive the amount from the State Government as provided in this Chapter; (g) permanent tenants, protected tenants and other tenants holding such lands shall, as against the State Government, be entitled only to such rights or privileges and shall be subject to such conditions as are provided by or under this Act; and any other rights and privileges which may have accrued to them in such lands before the date of vesting against the landlord or other person shall cease and determine and shall not be enforceable against the State Government.

(1) Subject to the provisions of the succeeding sections of this Chapter, every person who was a permanent tenant, protected tenant or other tenant or where a tenant has lawfully sublet, such sub-tenant shall, with effect on and from the date of vesting, be entitled to be registered as an occupant in respect of the lands of which he was a permanent tenant, protected tenant or other tenant or sub-tenant before the date of vesting and which he has been cultivating personally.

(2) If a tenant or other person referred to in sub-section (1),— (i) holds land partly as owner and partly as tenant but the area of the land held by him as owner is equal to or exceeds a ceiling area he shall not been entitled to be registered as an occupant of the land held by him as a tenant before the date of vesting; (ii) does not hold and cultivate personally any land as an owner, but holds land as tenant, which he cultivates personally in excess of a ceiling area, he shall be entitled to be registered as an occupant to the extent of a ceiling area; (iii) holds and cultivates personally as an owner of any land the area of which is less than a ceiling area, he shall be entitled to be registered as an occupant to the extent of such area as will be sufficient to make up his holding to the extent of a ceiling area.

(3) The land held by a person before the date of vesting and in respect of which he is not entitled to be registered as an occupant under this section shall be disposed of in the manner provided in section 77 after evicting such person.

If any tenant entitled to be registered as an occupant under sub-section (1) of section 45, held land from one or more than one landlord, such tenant shall, subject to such rules as may be made by the State Government, be entitled to choose the area and the location of the land of which he wishes to become the registered occupant x x x:

Provided that the area so chosen shall not, as far as may be practicable, be other than the area included in a survey number or a sub-division or a recognised share of a survey number.

(1) Save as provided in section 106 every land-owner, landlord and all other persons interested in the land shall, for the extinguishment of their rights in the lands vesting in the State Government under sub-section (6) of section 15 or section 20 or section 44, be entitled to an amount determined with reference to the net annual income derivable from the land or all the lands, as the case may be, in accordance with the following scale, namely:— (i) for the first sum of rupees five thousand or any portion thereof of the net annual income from the land, fifteen times such sum or portion; (ii) for the next sum of rupees five thousand or any portion thereof of the net annual income from the land, twelve times such sum or portion; (iii) for the balance of the net annual income from the land, ten times such balance:

Provided that,— (i) if the tenant in respect of the land is a permanent tenant, the amount payable shall be six-times the difference between the rent and the land revenue payable for such land; (ii) if the tenant holds land from intermediaries the amount shall be paid to the land-owner and the intermediaries in the same proportion in which the rent paid for the land by the tenant was being appropriated by them immediately before the date of vesting; (iii) if the land vesting in the State Government is D class land referred to in Part A of Schedule I or if the landlord is,— (1) a small holder; (2) a minor; (3) a widow; (4) a woman who has never been married; (5) a person who is subject to such physical or mental disability as may be prescribed; or (6) such soldier or seamen whose lands vest in the State Government under section 44, an amount equal to twenty times the net annual income from such land shall be payable.

(2) For the purpose of sub-section (1), the net annual income from the land shall be deemed to be the amount payable as annual rent in respect of the land as specified in section 8. But where in a land assessed as wet land or dry land the landlord has raised fruit bearing trees, the annual income for purpose of sub-section (1) shall, subject to such rules as may be prescribed, be determined on the basis of assessment for garden land which could have been levied having regard to the nature of the fruit bearing trees.

(3) Where there are wells or other structures of a permanent nature on the land constructed by the landlord the value thereof calculated in the prescribed manner shall also be payable.

(4) Notwithstanding anything in sub-sections (1) and (3), the aggregate amount payable according to the said sub-sections shall not exceed rupees two lakhs.

(1) The State Government shall, by notification, constitute for each Taluk a Tribunal for purposes of this Act consisting of the following members, namely:— (i) the Assistant Commissioner of the Revenue sub-division having jurisdiction over the Taluk or an Assistant Commissioner specially appointed for the purpose by the State Government. (ii) four others nominated by the State Government of whom at least one shall be x x x a person belonging to the Scheduled Castes or Scheduled Tribes, x x x. Provided that if in its opinion it is necessary so to do, the State Government may constitute additional Tribunals for any taluk and the Deputy Commissioner may, subject to any general or special orders of the State Government, distribute the work among the Tribunals in any taluk.

(2) The Assistant Commissioner shall be the Chairman of the Tribunal.

(3) The State Government may from time to time likewise re-constitute the Tribunal. Any proceedings pending before the Tribunal shall be continued by the reconstituted Tribunal as if the same were instituted before it. Explanation.—For the purpose of this sub-section 'reconstitution' shall include removal of a member from or nomination of a new member to the Tribunal.

(4) The quorum to constitute the meeting of the Tribunal and procedure to be followed by it shall be such as may be prescribed.

(5) No act or proceeding of the Tribunal shall be deemed to be invalid by reason only of the existence of any vacancy among its members or any defect in the constitution or re-constitution thereof.

(6) The non-official members of the Tribunal shall be entitled to such travelling and other allowances as may be prescribed.

(7) The Tahsildar or any officer specially appointed for the purpose by the State Government shall be the Secretary of the Tribunal.

(8) x x x (2) The Assistant Commissioner shall be the Chairman of the Tribunal. (3) The State Government may from time to time likewise re-constitute the Tribunal. Any proceedings pending before the Tribunal shall be continued by the reconstituted Tribunal as if the same were instituted before it. Explanation.—For the purpose of this sub-section ‗reconstitution‘ shall include removal of a member from or nomination of a new member to the Tribunal. (4) The quorum to constitute the meeting of the Tribunal and procedure to be followed by it shall be such as may be prescribed. (5) No act or proceeding of the Tribunal shall be deemed to be invalid by reason only of the existence of any vacancy among its members or any defect in the constitution or re-constitution thereof. (6) The non-official members of the Tribunal shall be entitled to such travelling and other allowances as may be prescribed. (7) The Tahsildar or any officer specially appointed for the purpose by the State Government shall be the Secretary of the Tribunal. (8) x x x

(1) Every person entitled to be registered as an occupant under section 45 may make an application to the Tribunal in this behalf. Every such application shall, save as provided in this Act, be made before the expiry of a period of six months from the date of the commencement of section 1 of the Karnataka Land Reforms (Amendment) Act, 1978, x x x (2) On receipt of the application, the Tribunal shall publish or cause to be published a public notice in the village in which the land is situated calling upon the landlord and all other persons having an interest in the land to appear before it on the date specified in the notice. The Tribunal shall also issue individual notices to the persons mentioned in the application and also to such others as may appear to it to be interested in the land. (3) The form of the application, the form of the notices, the manner of publishing or serving the notices and all other matters connected therewith shall be such as may be prescribed. The Tribunal may for valid and sufficient reasons permit the tenant to amend the application. (4) Where no objection is filed, the Tribunal may, after such verification as it considers necessary, by order either grant or reject the application. (5) Where an objection is filed disputing the validity of the applicant‘s claim or setting up a rival claim, the Tribunal shall, after enquiry, determine, by order, the person entitled to be registered as occupant and pass orders accordingly. (5A) Where there is no objection in respect of any part of the claim, the Tribunal may at once pass orders granting the application as regards that part and proceed separately in respect of the other part objected to. (6) The order of the Tribunal under this section shall be final and the Tribunal shall send a copy of every order passed by it to the Tahsildar and the parties concerned. Provided that the Tribunal may, on the application of any of the parties, for reasons to be recorded in writing, correct any clerical or arithmetical mistakes in any order passed by it. Provided further that the Tribunal may on its own or on the application of any of the parties, for reasons to be recorded in writing correct the extent of land in any order passed by it after causing actual measurement and after giving an opportunity of being heard to the concern-parties. (7) The person to be registered as an occupant shall pay to the State Government as premium an amount equal to fifteen times the net annual income referred to in sub-section (2) of section 47 in the case of A Class, B Class and C Class lands referred to in part A of Schedule 1 and twenty times such income in the case of D Class land referred to in the said Part A, plus the amount, if any, payable under sub-section (3) of that section: Provided that the premium payable by a permanent tenant shall be six times the difference between the rent and the land revenue of the land. (8) Where no application is made within the time allowed under sub-section (1), the right of any person to be registered as an occupant shall have no effect. (3) Subject to the provisions of sub-section (2), the order of the Tribunal shall be final.

(1) The Tahsildar shall, on receipt of the orders passed under sub-section (4) or sub-section (5) of section 48A and where no application is filed within the period provided in sub-section (1) of section 48A, on receipt of the application by the landlord, proceed to determine the amount payable under section 47 and prepare a statement showing the apportionment of the amount so determined among the persons entitled to it in accordance with the value of their respective interest in the land. Such statement shall contain the following particulars, namely:— (a) the particulars of the lands in respect of which the amount is to be paid; (b) the names of the land-owner, landlord and intermediaries, if any, and other persons interested in the land and the amount payable to each of them; (c) such other particulars as may be prescribed. (2) Notwithstanding anything contained in sub-section (1), where there is no agreement among the persons entitled for the amount regarding the right to or apportionment of the amount, the Tahsildar shall refer the question to the Court. On receipt of such reference the Court shall after giving notice to the parties concerned, try the question referred to it and record findings thereon and send the same to the Tahsildar. The Tahsildar shall then prepare the statement referred to in sub-section (1) in accordance with the said findings.

(1) The Tribunal may, when it considers it just and proper and subject to such terms and conditions as it may impose, issue interlocutory orders in the nature of temporary injunction or appointment of Receiver concerning the dwelling house in respect of which an application is made under section 38 or the land in respect of which an application is made under section 48A. (2) The Tribunal may at any time revoke or modify the order issued by it under sub-section (1). (3) Subject to the provisions of sub-section (2), the order of the Tribunal shall be final.

Where a tenant has lawfully sub-let the land held by him, such sub-tenant of the land, shall, to the exclusion of the tenant, to the extent and subject to the conditions specified in sections 45 and 46 be entitled to be registered as occupant of the land of which he was a sub-tenant before the date of vesting.

(1) The Tahsildar while determining the amount under section 48B shall determine any mortgage or other encumbrance lawfully subsisting on the land on the date of vesting, and the amount due under the mortgage or the encumbrance in respect of such land shall save as provided in section 106 be a charge on the amount payable in respect of such land to the person who has created the mortgage or encumbrance. (2) (a) If the total amount payable in respect of encumbrances is less than the amount payable in respect of such land it shall be deducted from such amount and the balance paid to the land-owner, landlord the intermediaries, if any, and other persons interested, towards the amount. (b) If the total amount payable in respect of the encumbrances is more than the amount payable in respect of the land, the amount payable shall be distributed among the holders of encumbrances in the order of priority. If any person has a right to receive maintenance or alimony from the profits of the land, deductions shall also be made for such payment out of the amount payable. (3) If any question of law is involved regarding the validity of the encumbrance, the claim of the holder of the encumbrance or regarding the amount due in respect of the encumbrance or if there is no agreement regarding any encumbrance between the landlord and the holder of the encumbrance, then notwithstanding anything contained in section 132, the Tahsildar shall refer the question for decision to the Court. On receipt of such reference the Court shall after giving notice to the parties concerned, try the question referred to it as expeditiously as possible and record findings thereon and send the same to the Tahsildar. The Tahsildar shall then give the decision in accordance with the said findings. (4) Notwithstanding anything contained in any law, any advance paid by the tenant to the landlord for the lease or purchase of the land held by him on lease from the landlord shall be deemed to be a charge on the land, and the debt shall be discharged in the same manner as an encumbrance on such land under this section.

(1) Save as provided in section 106, the amount payable to any person under section 47 shall, subject to the provisions of section 50,— (a) be paid in cash in a lumpsum if the amount payable does not exceed two thousand rupees; and (b) if the amount payable exceeds two thousand rupees the amount up to two thousand rupees shall be paid in cash and the balance shall be paid in non-transferable and non-negotiable bonds carrying interest at the rate of five and a half per cent per annum and of guaranteed face value maturing within a specified period not exceeding twenty years: Provided that the amount payable under the bonds under this clause may be paid in such number of instalments not exceeding twenty as may be prescribed. Provided further that the amount payable shall, subject to such rules as may be prescribed, be paid,- (i) in the case of a minor, a person who has attained the age of sixtyfive years a woman who has never been married, a small holder, a person subject to the prescribed physical or mental disability and subject to clause (ii), a widow,— (a) in a lumpsum where the amount payable does not exceed fifty thousand rupees,; and (b) where the amount payable exceeds fifty thousand rupees, the first fifty thousand rupees in a lumpsum and the balance in non-transferable and non-negotiable bonds carrying interest at the rate of five and half per cent per annum and of guaranteed face value maturing within a specified period not exceeding twenty years; (ii) in the case of a widow, if she so elects in writing, in the form of annuity during her life time, a sum determined in such manner as may be prescribed; which shall not be less than the net annual income referred to in sub-section (2) of section 72. Explanation:—For the purpose of this clause widow, minor and a person subject to physical or mental disability include, a woman who is a widow, a person who is a minor, a person subject to physical or mental disability respectively at the time when the amount payable is determined: Provided also that in relation to a small holder the second proviso shall have effect as if it was in force on and from the First day of March, 1974.

(2) Notwithstanding anything in sub-section (1), on or after 1st March 1984, the balance and interest thereon payable in accordance with clause (b) of sub-section (1) of the second proviso to the said sub-section shall, in lieu of the bonds specified therein, be paid in the following manner, namely:— (a) the interest accrued at the rate of five and a half per cent per annum till 1st March, 1984 remaining unpaid shall be paid in five consecutive annual, as far as may be, equal instalments commencing from 1st March, 1984 in National Savings Certificates; (b) the whole or, as the case may be, part of the balance specified in sub-section (1), payable before 1st March, 1984 remaining unpaid shall be paid in five consecutive annual, as far as may be, equal instalments commencing from the said date in National Savings Certificates; and (c) the whole or, as the case may be, part of the said balance payable on or after 1st March, 1984 shall be paid in ten consecutive annual, as far as may be equal instalments commencing from the said date in National Savings Certificates: Provided that along with each of the instalments referred to in items (b) and (c), the interest thereon from 1st March, 1984 at the rate of five and a half per cent per annum upto the date of payment thereof shall also be paid in National Savings Certificates.

The payment of the amount or the value of encumbrance, maintenance or alimony to the land-owner, landlord, or intermediary or other persons entitled thereto in the manner prescribed by or under this Act shall be a full discharge of the liability for payment of compensation and no further claims for payment of the amount shall lie against the State Government or any other person.

(1) The amount of premium in respect of the land of which a tenant or sub-tenant entitled to be registered as occupant under section 45 shall be payable to the State Government by the tenant or sub-tenant,— (i) where the amount payable does not exceed Rs. 2,000, in a lumpsum; (ii) in other cases,— (a) either in lumpsum; or (b) where the amount is paid by him out of his own funds, in annual instalments of such number not exceeding twenty as he may intimate, with interest at five and half per cent per annum, from the date of the order under sub-section (4) or sub-section (5) of section 48A and where the money is advanced by the State Land Development Bank or a credit agency, in annual instalments of such number not exceeding the number permitted as maximum for the recovery of term loan granted by such bank or agency without interest there on. Provided that where payment is in instalments, Rs. 2,000 shall be paid as the first instalment and the balance in equated annual instalments. Provided further that where the extent of the land in respect of which a person is registered as an occupant together with other land, if any, held by him, does not exceed ten acres of ‗D‘ Class land, or an extent equivalent thereto, comprising of one or more classes of other land specified in Part A of Schedule-I, determined in accordance with the formula specified in Part B of Schedule-I, he shall be exempted from paying the premium and instalments thereof which fall due on or after the commencement of Karnataka Land Reforms (Second Amendment) Act, 1990 or having fallen due before the said date has remained un-paid. (1-A) Every tenant who is registered as an occupant shall be entitled to get assistance from the State Land Development Bank or from a Credit Agency as defined in the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act, 1974 (Karnataka Act 2 of 1975) for the payment of the premium in accordance with such rules as may be prescribed: x x x (1B) Notwithstanding anything contained in the Karnataka Co-operative Societies Act, 1959, the amount advanced to the tenants by the State Land Development Bank under rules made under sub-section (1A) may be recovered by the State Government in the same manner as arrears of land revenue and paid to said Bank. (1C) The amount advanced to a tenant by the credit agency may be recovered in the same manner as is provided in the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act, 1974 for recovery of any financial assistance given by it to a person for agricultural purposes. (2) In addition to the premium payable, the tenant shall also be liable to pay the land revenue due on that land.

(1) There shall be constituted for the State of Karnataka a fund called the Karnataka Religious and Charitable Institutions Annuity Fund. (2) The fund specified in sub-section (1) shall consist of,— (a) the amount of premium collected from the tenants or sub-tenants of land belonging to the institutions referred to in section 106; (b) the interest earned on the amounts in the said fund; (c) such amount transferred from the consolidated fund of the State as may be necessary to make up the deficit, if any, where the amounts referred to in the above clauses are insufficient to pay the annuities to such institutions. (3) The amount specified in clause (a) of sub-section (2), shall first be credited to the Consolidated Fund of the State. Such amount and the amount referred to in clause (c) of sub-section (2), shall thereafter, under appropriation duly made by law in this behalf, be entered in and transferred to the said fund. The amount at credit in the said fund may be invested in such manner as the State Government may direct. (4) The annuities payable to the said institutions shall be paid from out of the said fund.

(1) If a tenant or sub-tenant fails to make payment of any instalment in accordance with the provisions of the foregoing sections x x x, the amount of such instalment shall also be recoverable as an arrear of land revenue. (2) The amount recovered under sub-section (1) shall be deposited with the Tahsildar.

(1) On receipt of the final orders passed under sub-section (4) or sub-section (5) of section 48A, subject to such rules as may be prescribed, the Tahsildar shall issue a certificate that the tenant has been registered as an occupant. The certificate shall be conclusive evidence of such registration. Proviso x x x (2) The Tahsildar shall forward a copy of the certificate issued under sub-section (1) to the concerned Sub-Registrar who shall, notwithstanding anything contained in the Registration Act, 1908 (Central Act 16 of 1908) or any other law, register the same.

(1) Notwithstanding anything contained in the preceding sections of this Chapter, where the tenant is a minor or a person subject to any mental or physical disability or a soldier in service in the Armed Forces of the Union or a seaman, x x x the right of the tenant under section 45 may be exercised,— (i) by the minor within one year from the date on which he attains majority; (ii) by a person subject to physical or mental disability within one year from the date on which such disability ceases to exist; (iii) by a soldier within one year from the date on which he is released from the Armed Forces or is sent to the Reserve; (iv) by a seaman, within one year from the date on which he ceases to be a seaman. (2) The provisions of the preceding sections of this Chapter shall thereupon, mutatis mutandis, be applicable to such land vesting in the State Government.

(1) Where it appears to the Tahsildar that any person has leased land contrary to the provisions of this Act, he shall issue a notice to such person to show cause within fifteen days from the date of service of the notice why the land leased should not be forfeited to the State Government as penalty for contravention of the Act.

(2) If the Tahsildar on considering the reply or other cause shown is satisfied that there has been such a lease he may, by order, declare that the right, title and interest of such person in the land shall be forfeited to the State Government as penalty. Thereupon the land shall vest in the State Government and the Tahsildar may take possession thereof by summarily evicting any person occupying it. No amount shall be payable in respect of such land.

(3) Such land shall be disposed of in accordance with the provisions of section 77.

Notwithstanding anything contained in any law, if at any time after the tenant has been registered as occupant, x x x, under any of the foregoing provisions, such tenant fails to cultivate the land personally for three consecutive years, he shall, unless the Tahsildar condones such failure for sufficient reasons, be evicted and the land shall be disposed of in accordance with the provisions of section 77.

(1) Notwithstanding anything contained in any law, no land of which the occupancy has been granted to any person under this Chapter shall, within fifteen years from the date of the final order passed by the Tribunal under sub-section (4) or sub-section (5) or sub-section (5A) of section 48A be transferred by sale, gift, exchange, mortgage, lease or assignment; but the land may be partitioned among members of the holder‘s joint family, x x x.

(2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the occupant registered as such or his successor-in-title to take a loan and mortgage or create a charge on his interest in the land in favour of the State Government, a financial institution, a co-operative land development bank, a co-operative society or a company as defined in section 3 of the Companies Act, 1956 in which not less than fifty one per cent of the paid-up share capital is held by the State Government or a Corporation owned or controlled by the Central Government or the State Government or both for development of land or improvement of agricultural practices; or for raising educational loan to prosecute the higher studies of the children of such person and without prejudice to any other remedy provided by any law, in the event of his making default in payment of such loan in accordance with the terms and conditions on which such loan was granted, it shall be lawful to cause his interest in the land to be attached and sold and the proceeds to be utilised in the payment of such loan.

Explanation.- For the purpose of this sub-section, ―Higher studies‖ means the further studies after Pre-university Examination or 12th Standard Examination conducted by CBSE or ICSE or any Diploma courses.

(3) Any transfer or partition of land in contravention of sub-section (1) shall be invalid and such land shall vest in the State Government free from all encumbrances and shall be disposed in accordance with the provisions of section 77.

If the person who has been registered as occupant x x x under this Chapter or his successor-in-title intends, within six years from the date of such registration x x x, giving up personal cultivation of the land, he shall surrender the land to the State Government, and on such surrender the State Government shall pay an amount equal to the premium paid and the depreciated value of improvements, if any, effected after the date of registration x x x, to the person surrendering and the other persons interested in the land. The surrendered land shall then be at the disposal of the State Government and the Tribunal may thereafter dispose of it as surplus land vesting in the State Government.